Bitcoin Price Recovery Stalls, Potential Decline Ahead

Bitcoin has begun a recovery trend from $68,000, currently trading above $70,000, yet may face challenges in maintaining this upward trajectory.

Key Takeaways

Bitcoin has started a recovery above $69,500 and $70,000.
The current price remains above $70,000 and the 100-hour simple moving average.
There was a breakthrough of a bearish trend line with resistance set at $69,500 on the hourly chart of the BTC/USD pair (data from Kraken).
If Bitcoin stays below $71,500 and $72,000, it may see further declines.

Bitcoin Price Bounce Weakens

Bitcoin Makes a Move Towards Recovery

Bitcoin has found solid support near the $67,500 area and recently kicked off a recovery wave. The price has risen above resistance levels of $68,800 and $69,500. A significant break above a bearish trend line with a resistance point at $69,500 can be observed on the hourly chart of the BTC/USD pair. Bulls managed to drive the price above the 38.2% Fibonacci retracement level, which is a recovery measure from the $75,999 high to the $67,343 low.

However, resistance has emerged around the $71,500 zone, coinciding with the 50% Fibonacci retracement level of the recent downward move. Currently, Bitcoin is trading above the $70,000 mark and the 100-hour simple moving average. Should Bitcoin maintain stability above $70,000, it may look to increase further. Immediate resistance exists near $71,650, while the first significant resistance is around $72,000. Should the price close above this level, it could signal further upward movement.

Bitcoin Price Source: BTCUSD on TradingView.com

In such a scenario, the price could rise to test resistance at $73,500. Additional gains could push the price toward the $74,200 mark, with $75,000 being the next significant barrier for bulls.

Potential for Another Decline in Bitcoin?

Should Bitcoin fail to surpass the resistance at $71,650, a decline may ensue. Immediate support lies near the $70,000 level, followed by a critical support level at $69,350. Should it drop further, the next support point is around $68,950. Any additional losses could lead the price toward the $68,000 support level in the short term. The main support position is currently at $67,500; falling below this could hinder Bitcoin's recovery.

Technical Indicators:

Hourly MACD: The MACD is losing momentum in the bullish range.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now above the 50 mark.
Major Support Levels: $68,950, later $68,000.
Major Resistance Levels: $71,650 and $72,000.